Agreement with El Corte Ingles

RNS Number : 9342P

Banco Santander S.A.

07 October 2013

 

MATERIAL FACT

Banco Santander, S.A. and Santander Consumer Finance, S.A. ("Santander Consumer") communicate that Santander Consumer has reached today a strategic agreement with El Corte Inglés, S.A. ("El Corte Inglés") in consumer finance and client financing which includes the acquisition to El Corte Inglés of a 51% interest in Financiera El Corte Inglés, E.F.C., S.A. ("Financiera El Corte Inglés").  El Corte Inglés will retain the remaining 49%.

Financiera El Corte Inglés is a consumer finance business that provides financing for the acquisition of all sorts of goods and services of the entities of the El Corte Inglés group. El Corte Inglés group is a leading retailer in Spain and the top department store business in the country. 

The transaction values Financiera El Corte Inglés in €415 million.  It is expected that El Corte Inglés will receive prior to closing a special dividend of approx. €140 million. Thus, Santander Consumer will pay a price of approx. €140 million for the 51% stake of Financiera El Corte Inglés.

Financiera El Corte Inglés will have a seven member Board, of which Santander Consumer will appoint four members and El Corte Inglés the remaining three.

Closing of the transaction is conditional upon, inter alia, the required regulatory and antitrust approvals.  It is expected that closing will take place in the first quarter of 2014.

Boadilla del Monte (Madrid), October 7, 2013

 

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